Need help with the attached spreadsheet regarding correcting a financial statement and listing the errors.

The accountant for ABC Corporation resigned late in December, and so a relatively inexperienced bookkeeper was asked to results shown below. You are assigned to prepare a correct set of financial statements on the tab "corrected statements". and explain briefly why each constituted an error. Statement of cash flows and statement of owners' equity have intentionally been omitted, and should not be prepared. Retained earnings as of 1/1/15 was $201,000. Income tax is to be accrued at the rate of 30%. Otherwise there are no missing accounts. ABC Corporation Income Statement For Year Ended December 31, 2015 ABC Corporation Balance Sheet For Year ended December 31, 2015 Sales Inventory Gross margin 3,000,000 276,000 Depreciation expense Rent expense Dividends Expense Salaries expense Cost of goods sold Utilities expense Other operating expense Total operating expenses 21,000 48,000 20,000 482,000 2,100,000 17,000 20,000 Operating income Interest expense Net income 2,724,000 Cash Treasury Stock Accounts receivable Allowance for bad debts Investments Prepaid rent 2,708,000 16,000 12,000 4,000 Notes payable (due in three years) Equipment Restructuring costs Inventory Total long-term assets Total Assets ookkeeper was asked to prepare the annual financial statements, with the unfortunate corrected statements". On the "errors" tab, enumerate the errors made by the bookkeeper, uld not be prepared. mber 31, 2015 40,000 10,000 160,000 (8,000) Accumulated depreciation Accounts payable 110,000 120,000 Total current liabilities 230,000 119,000 350,000 30,000 Common stock Retained earnings 60,000 201,000 276,000 775,000 Total Liabilities & Equity 392,280 152,000 20,000 12,000 three years) 1,009,000 The accountant for ABC Corporation resigned late in December, and so a relatively inexperienced bookkeeper was asked to results shown below. You are assigned to prepare a correct set of financial statements on the tab "corrected statements". and explain briefly why each constituted an error. Statement of cash flows and statement of owners' equity have intentionally been omitted, and should not be prepared. Retained earnings as of 1/1/15 was $201,000. Income tax is to be accrued at the rate of 30%. Otherwise there are no missing accounts. ABC Corporation Income Statement For Year Ended December 31, 2015 ABC Corporation Balance Sheet For Year ended December 31, 2015 Sales Inventory Gross margin 3,000,000 276,000 Depreciation expense Rent expense Dividends Expense Salaries expense Cost of goods sold Utilities expense Other operating expense Total operating expenses 21,000 48,000 20,000 482,000 2,100,000 17,000 20,000 Operating income Interest expense Net income 2,724,000 Cash Treasury Stock Accounts receivable Allowance for bad debts Investments Prepaid rent 2,708,000 16,000 12,000 4,000 Notes payable (due in three years) Equipment Restructuring costs Inventory Total long-term assets Total Assets ookkeeper was asked to prepare the annual financial statements, with the unfortunate corrected statements". On the "errors" tab, enumerate the errors made by the bookkeeper, uld not be prepared. mber 31, 2015 40,000 10,000 160,000 (8,000) Accumulated depreciation Accounts payable 110,000 120,000 Total current liabilities 230,000 119,000 350,000 30,000 Common stock Retained earnings 60,000 201,000 276,000 775,000 Total Liabilities & Equity 392,280 152,000 20,000 12,000 three years) 1,009,000 ABC Corporation Corrected Income Statement For Year Ended December 31, 2015 Sales Less: Cost of Goods Sold Gross Margin Less: Operating Expenses Rent Expenses Salaries Expenses Utilities Expenses Other Operating Expenses Depreciation Expenses Total Operating Expenses Operating Profit Less: Non Operating Expenses Restructuring Costs Interest Expenses Net Income Before Income Tax Less: Income Tax @30% Net Income After Income Tax ABC Corporation Corrected Balance Sheet For Year Ended December 31, 2015 Assets Current Assets Cash Accounts Receivable Less: Allowance for Bad Debts Inventory Investments Prepaid Rent Total Current Assets Equipment Less: Accumulated Depreciation 3000000 2100000 900000 48000 482000 17000 20000 21000 588000 588000 312000 30000 12000 42000 42000 270000 81000 189000 Liabilities & Stockholder's Equity Liabilities 40000 Currrent Liabilities 160000 Accounts Payable 8000 Income Tax Payable 152000 152000 Total Current Liabilities 276000 20000 Long Tern Liabilities 12000 Notes Payable (due in 3 Years) 500000 Total Liabilities 350000 Stockholder's Equity 110000 Common Stock 240000 240000 Begining Retained Earnings Add: Profit for the Year Less: Dividend Closing Retained Earning Less Treasury Stock Total Stockholder's Equity Total Assets 740000 Total Liabilities & Stockholder's Equity 120000 81000 201000 201000 119000 320000 60000 201000 189000 20000 370000 370000 430000 10000 420000 740000 1 2 3 1 2 3 4 Errors & correction In Income Statement The amount of Gross profit ($2,724,000) reported is wrong, as Inventory is deducted in place of Cost of Goods Sold from Sales. only Shown in Balance Sheet as Current Assets. Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory. So Clo Correct Operating Income is $312,000 and not $16,000. Reason for wrong Operating Income is that first of all the Gross Margin Dividend of $20,000 is treated as Expenses. Dividends is not an expense, it's the appropriation of profit. Thirdly Restructuring C Expenses, as restructuring expenses are cost incurred by the company for efficiency improvent or profitability improvement. Th should be treated as revenue expenditure Entry for Income Tax @30% has not been done in Income Statement. Income tax ($81,000) deducted from Net income & as it i Payable Errors & correction In Balance Sheet Profit for the Year (wrong profit of $4,000) is not shown in Balance Sheet. Correct Income for the year ($189,000) is added to R Deduction from Retained Earnings Notes Payable shown under Assets is an Error. Notes Payable means the money borrowed, is treated as an assets. It is a Liabilit Liabilities in Balance Sheet Accumulated Depreciation is show as Liability is an error. Net Equipment is to be shown in Balance Sheet, hence amount of Acc amount of Equipment, so as to report the Net Equipment figure in Balance Sheet under Assets Treasurt Stock ($10,000) show as Assets is an Error. Treasury Stock are the shares previously issued, but later Repurchased by t Reported as deduction in Stockholder's Equity ans not as an assets